Coinbase Calls for U.S. Reform of Cryptocurrency Tax Rules

Deep Tide TechFlow reported on March 27 that, according to CryptoNews, Coinbase Chief Product Officer Faryar Shirzad publicly urged U.S. lawmakers to revise the current cryptocurrency tax regulations, pointing out that categorizing crypto assets as “property” stems from a 20th-century tax law framework, which forces users to incur tax obligations when paying gas fees or using stablecoins for everyday transactions, severely hindering the widespread adoption of cryptocurrency.

Coinbase data shows that inquiries related to tax reporting have increased by 34% compared to the same period last year. The 2025 tax year will generate millions of 1099-DA forms, many of which correspond to transaction amounts below $600, with some even below $1. Additionally, over 63% of users have issues with missing cost basis records, primarily due to assets being frequently transferred between different wallets and exchanges. Coinbase suggests implementing an exemption for small transactions from reporting requirements, similar to the existing “de minimis exemption” mechanism in tax law.